(a) Except as provided by Subsection (g), the board shall designate one or more banks in the district to serve as a depository for district money. All district money shall be deposited in a depository bank. This subsection does not limit the power of the board to place a portion of the district’s money on time deposit or to purchase certificates of deposit or other authorized investments.
(b) The board shall prescribe the term of service for depositories.

(c) To the extent that money in a depository bank or a trustee bank is not invested or insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by Chapter 2257, Government Code.
(d) Before designating a depository bank, the board shall issue a notice stating the time and location the board will meet for that purpose and shall invite banks in the district to submit applications to be designated depositories.
(e) The board shall consider the management and condition of each bank that applies under Subsection (d) and designate as a depository the bank or banks that:
(1) offer the most favorable terms and conditions for handling district money;
(2) the board finds have proper management; and
(3) are in a condition to warrant handling of district money.
(f) Membership on the district’s board of an officer or director of a bank does not disqualify the bank from being designated as a depository bank.
(g) If the board does not receive any applications before the meeting under Subsection (d), the board shall designate as a depository a bank or banks inside or outside the district under terms the board finds advantageous to the district.
(h) District money may be invested and reinvested as provided by Chapter 2256, Government Code.
(i) The board by resolution may provide that an authorized district representative may invest and reinvest district money and provide for money to be withdrawn from the appropriate district accounts for investments on terms that the board considers advisable.